Insurance Claim for Cargo Stuck in Dubai
Due to recent hostilities in West Asia, cargo sent to Europe via Emirates Airline is stuck in Dubai as onward flights are canceled.
Insurance Coverage
- The cargo is insured under:
- Institute Cargo Clauses (All Risks)
- Institute War Clauses
- Institute Strikes, Riots and Civil Commotion Clauses
However, all three standard Institute clause sets exclude loss caused by delay, even if the delay is due to an insured peril such as war. Therefore, deterioration due to delay may not be covered.
Reimbursement may be possible for expenses incurred to preserve the cargo, such as cold storage or emergency handling. It is advised to document preservation expenses diligently to support claims for these costs.
Eligibility for Export Promotion Mission Schemes
The Directorate General of Foreign Trade (DGFT) recently announced several schemes under the Export Promotion Mission (EPM).
Scheme Eligibility
- Most schemes are aimed at MSMEs and export promotion organizations.
- 3-star export house recognition holders, who are not MSMEs, are generally not eligible.
- Larger exporters might still benefit indirectly through initiatives such as:
- Integrated Support for Trade Intelligence and Facilitation (INSIGHT)
- Facilitating Logistics, Overseas Warehousing and Fulfilment (FLOW)
- Logistics Interventions for Freight and Transport (LIFT)
Supreme Court Judgment on DEEC Benefit
In a recent judgment [(2026) 40 Centax 60 (SC)], the Supreme Court ruled that an assessee is not entitled to DEEC benefits if the advance license expired before the goods were cleared duty-free from a warehouse, even if the license was valid when transferred to the importer.
Key Points from the Case
- Imports were made in January 2000, and clearance was sought in December 2000.
- Para 4.15(c) of HBP 2000-01 emphasized license validity should be based on the shipment date from the supplying country.
- Sections 15 and 68 of the Customs Act, 1962, were used to determine the duty rate at clearance, but the shipment date consideration was overlooked.
- Similar regulatory positions continue as per Paras 2.17(a), 2.18(a), 2.19, and 11.11 of HBP 2023, and Para 2.12 of FTP 2023.
Business Standard encourages readers to submit SME-related queries, particularly concerning GST, export, and import issues, at smechat@bsmail.in.
